Question

The following were selected from among the transactions completed during the current year by Westphal Co., an appliance wholesale company:
Jan. 6. Sold merchandise on account to Alta Co., $10,500. The cost of merchandise sold was $6,300.
Mar. 9. Accepted a 60-day, 8% note for $10,500 from Alta Co. on account.
May 8. Received from Alta Co. the amount due on the note of March 9.
June 1. Sold merchandise on account to Witmer's for $8,000. The cost of merchandise sold was $4,800.
5. Loaned $11,000 cash to Dru York, receiving a 30-day, 6% note.
11. Received from Witmer's the amount due on the invoice of June 1, less 2% discount.
July 5. Received the interest due from Dru York and a new 60-day, 9% note as a renewal of the loan of June 5. (Record both the debit and the credit to the notes receivable account.)
Sept. 3. Received from Dru York the amount due on her note of July 5.
8. Sold merchandise on account to Rochin Co., $10,000. The cost of merchandise sold was $6,000.
Oct. 8. Accepted a 60-day, 6% note for $10,000 from Rochin Co. on account.
Dec. 7. Rochin Co. dishonored the note dated October 8.
28. Received from Rochin Co. the amount owed on the dishonored note, plus interest for 21 days at 9% computed on the maturity value of the note.

Instructions
Journalize the transactions. Round to the nearest dollar.



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  • CreatedNovember 06, 2012
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